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HomeCrypto NewsMarketShould 10% More Terra Luna Classic (LUNC) Be Minted To Burn It 50× Faster?

Should 10% More Terra Luna Classic (LUNC) Be Minted To Burn It 50× Faster?


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Faced with a new proposal to restructure UST and reduce the LUNC supply, the Terra Classic community has been split into two camps.

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As reported by The Crypto Basic yesterday, a new proposal authored by some members of the Terra Rebels proposes to launch an algorithmic fungible token (AFT) to restructure TerraClassicUSD (USTC) and regain the dollar peg.

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While the proposal promises to burn the LUNC token faster, it requires that 500 billion or about 10% more LUNC be minted to buy Bitcoin to collateralize the AFT.

So, should more LUNC be minted to burn it faster as proposed?

Notably, this question has split the LUNC community into two factions. While some believe it is a “no-brainer” as, in the end, the community wants faster burns, others like LUNC Burn assert it is a bad idea. Notably, the latter continuing its campaign against the proposal today, highlighted that there are no contingencies should the proposal fail.

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Fall-Out From Proposal Sparks Concerns That A Developer Could Hold The Chain Hostage As Developers Resort To Open Debate

It bears mentioning that another Terra Classic developer Tobias Andersen AKA Zaradar, is working on a separate proposal to repeg USTC that reportedly does not require the minting of more LUNC.

In response to the proposal from Alex Forshaw, Zaradar, who is one of the core developers, asserted quite authoritatively that no one will be minting LUNC tokens as long as he holds the reins. While some opposed to the proposal have rallied behind him, it raises concern as to whether a developer should prioritize his preference over the community should the community decide to support the proposal.

It also highlights a lack of depth in the LUNC development team and a lack of incentives to attract new developers that could replace any that decide to hold the chain hostage. 

Notably, Forshaw and Zaradar have resorted to a war of words on Twitter as they contrast their ideas. However, as the community awaits the proposal from the latter, LUNC DAO, a popular community validator, has welcomed the plurality of ideas and heated debates as facilitators of growth.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Mark Brennan
Mark Brennanhttps://thecryptobasic.com/
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

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